4 Best Money Habits Millennials Can Learn From Kevin O’Leary
Written by
Heather Taylor
Edited by
Amber Barkley
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As of 2024, millennials are between the ages of 28 to 43 years old — and there’s still a lot of information this generation needs to know about managing money.
“Shark Tank” investor Kevin O’Leary has shared financial advice over the years designed to help millennials at each stage in their personal finance journey. Read on to find out which tips from O’Leary millennials can use to improve their money habits.
Write Down Your Sources of Income Over a 90-Day Period
In an interview with YouTuber Evan Carmichael, O’Leary shared a financial tip his mother had passed down to him.
Take a piece of paper and write down your sources of income over a 90-day period. Then, flip the paper over and write down everything you spent money on in the last 90 days, like rent and food.
If the numbers are equal, it’s a good sign. However, O’Leary said that 90% of the time, people discover they’re spending more money than they make.
Millennials can try this exercise to determine if they’re living within their means. If not, this is a good opportunity to identify recurring expenses to cut back on or cut out completely.
Put Aside $100 a Week for Retirement
According to O’Leary, the biggest money mistake being made today is not setting aside $100 a week for retirement.
In an interview with CNBC Make It, O’Leary said this mistake is being made by people of all ages. Millennials can start implementing this money habit as soon as today.
Pro tip: if you don’t think you can save $100 weekly, go through your budget and see if there are any expenses you can cut, such as unsubscribing from a streaming service you hardly use.
“The way to invest is to take $100 a week and put it to work,” said O’Leary. He recommends putting the money into a diversified exchange-traded fund (ETF) and letting the market do its thing.
Pay Off Debt Before Buying Coffee
Many millennials carry student loans and other forms of debt, like credit cards, where they pay high interest. If this sounds like your financial situation, O’Leary said you need to pay off debt before buying coffee.
Want your daily coffee? O’Leary recommends making it at home for much less while you prioritize paying off your debt.
Once you pay off all outstanding debt, then you can spend your money however you want.
Stop Buying Things You Don’t Need
This is one of O’Leary’s top financial habits to embrace before turning 30. Younger millennials, as well as their elder counterparts, can embrace this advice to save and invest their money.
One of the biggest items people spend money on is clothing they don’t need. Most of it sits in closets for years, hardly being worn.
If you take the money you would have spent on clothes and invest it instead, O’Leary said you’d be amazed by the power of compound interest.
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